Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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FTO orders FBR to fix IRIS glitches blocking Rs2.3m tax credit
Pakistan's Federal Tax Ombudsman (FTO) has ordered the FBR to resolve technical glitches in its IRIS tax filing system that have been blocking taxpayers from claiming Rs2.3 million in legitimate tax credits. The system errors are preventing the proper processing of tax credit claims, causing financial harm to affected taxpayers. The ruling highlights ongoing issues with Pakistan's tax administration technology infrastructure and compels FBR to remediate specific software defects within its flagship tax portal, with direct implications for taxpayer compliance and relief.
Trump 2.0 tariff tracker
A tracking resource monitoring the evolving tariff actions under the Trump administration's second term, covering the wide-ranging import duties and trade measures imposed across multiple trading partners. The tracker provides practitioners and businesses with an ongoing reference for the rapidly changing tariff landscape, including sector-specific duties, country-specific rates, and related trade compliance implications. Given the frequency and scale of tariff changes under Trump 2.0, such a resource carries significant practical impact for importers, exporters, and supply chain planners navigating customs and trade compliance obligations in real time.
FBR imposes excise duty on e-liquids used in vapes & e-cigarettes
Pakistan's Federal Board of Revenue (FBR) has introduced federal excise duty on e-liquids used in vaping devices and e-cigarettes. The new levy targets the growing alternative tobacco products market, bringing e-liquids into the formal excise tax framework. The measure is aimed at generating additional revenue and creating regulatory parity with traditional tobacco products. This development signals a significant policy shift in how Pakistan taxes next-generation nicotine products and will directly affect manufacturers, importers, and retailers operating in the vaping sector.
PTBA raises legal concerns over fixed Tax Scheme for small shopkeepers
The Pakistan Tax Bar Association (PTBA) has raised legal objections to the government's Fixed Tax Scheme designed for small shopkeepers, questioning its constitutional and statutory validity. The PTBA's concerns center on the legal framework underpinning the scheme, including issues around equitable treatment and proper legislative authority. The association's challenge could have significant implications for the implementation of the simplified tax regime, which was introduced to bring small retailers into the tax net through a flat-rate mechanism rather than standard income tax assessment procedures.
Rethinking the RMD: The Giving Strategy Hidden Inside Your Client’s IRA
This article explores the tax planning strategy of Qualified Charitable Distributions (QCDs) from IRAs as an alternative to standard Required Minimum Distributions (RMDs). It highlights how clients aged 70½ or older can donate up to $105,000 annually directly from their IRA to a qualified charity, satisfying RMD requirements while excluding the distribution from taxable income. The strategy can reduce adjusted gross income, potentially lowering Medicare premiums and taxation of Social Security benefits. The piece offers practitioners actionable guidance for clients with charitable intent who face mandatory distributions, making it relevant for personal income tax planning.
President Trump Imposes 50% Tariffs on Certain Canadian Products Under Section 338 of the Tariff Act
President Trump has imposed 50% tariffs on certain Canadian products invoking Section 338 of the Tariff Act, a rarely used statutory authority allowing retaliatory tariffs against countries deemed to discriminate against U.S. commerce. This action marks a significant escalation in U.S.-Canada trade relations, with immediate customs and import duty implications for businesses trading across the border. Companies importing affected Canadian goods into the U.S. must reassess duty liabilities, supply chain sourcing strategies, and classification obligations under the newly imposed tariff schedule.
Section 87A Rebate Litigation: Is the ITAT Appeal Fee Always ₹10,000? A Fresh Perspective
An analysis of whether the appeal fee before India's Income Tax Appellate Tribunal (ITAT) is always ₹10,000 in Section 87A rebate disputes. The article examines the fee structure under the Income Tax Act and argues that the applicable fee may vary depending on the assessed income or tax demand involved, offering a fresh perspective for practitioners handling rebate litigation. Section 87A provides a tax rebate for lower-income individuals, and disputes over its applicability have surged following recent tax authority positions. The piece has practical significance for taxpayers and advisors navigating ITAT proceedings on rebate claims.
Can CPC Apply the Supreme Court’s Checkmate Judgment Retrospectively? ITAT Says No
India's ITAT has ruled that the Centralised Processing Centre (CPC) cannot apply the Supreme Court's Checkmate Services judgment retrospectively to disallow employer contributions to provident funds. The Checkmate ruling held that delayed EPF/ESI deposits are not deductible, but the ITAT held that the CPC cannot invoke this judgment for assessment years predating the decision without proper adjudication. The ruling provides important relief for taxpayers whose returns were processed by the CPC with retrospective disallowances, clarifying limits on automated processing authorities and reinforcing procedural safeguards in tax assessments.
Alstadsæter, Johannesen, Le Guern Herry & Zucman on Transparency and Offshore Wealth
Researchers Alstadsæter, Johannesen, Le Guern Herry, and Zucman examine the impact of financial transparency measures on offshore wealth concealment. The study analyzes how automatic exchange of information and beneficial ownership registries have affected the behavior of wealthy individuals hiding assets in offshore accounts. The research provides empirical evidence on whether transparency initiatives have meaningfully reduced offshore tax evasion, offering important insights for policymakers designing anti-avoidance frameworks and international tax cooperation mechanisms. The findings carry implications for global efforts to combat illicit financial flows and improve tax compliance among high-net-worth individuals.
Calcutta HC Stays ₹3.91 Lakh GST Demand, Questions Jurisdiction in Section 74 Proceedings
The Calcutta High Court has stayed a ₹3.91 lakh GST demand notice, raising questions about jurisdictional authority in proceedings initiated under Section 74 of the GST Act. The court's intervention challenges whether the issuing authority had proper jurisdiction to initiate the demand, which relates to cases involving fraud, wilful misstatement, or suppression of facts. This ruling is significant for taxpayers facing similar jurisdictional disputes in GST enforcement actions, potentially limiting tax authorities' reach in Section 74 proceedings pending further judicial examination.
John Healey should cut National Insurance, not raise the personal allowance
This article argues that reducing National Insurance contributions would be a more effective and economically beneficial policy choice than raising the personal allowance in the UK. The piece examines the comparative merits of both approaches, likely addressing impacts on workers, employers, and the broader tax system. It advocates for NI cuts as the preferred mechanism for putting money back into taxpayers' pockets, challenging conventional assumptions about income tax threshold increases as the default tax relief measure.
CBIC Sets Up Panel to Examine Centralised GST Registration Under Single PAN
India's Central Board of Indirect Taxes and Customs (CBIC) has established a committee to evaluate the feasibility of centralised GST registration for businesses operating under a single PAN across multiple states. Currently, businesses must obtain separate GST registrations in each state where they operate. A centralised registration model could significantly simplify compliance for multi-state businesses, reducing administrative burden. The panel's findings could lead to a major structural reform in India's GST registration framework, impacting how large corporations and businesses with nationwide operations manage their indirect tax obligations.
Rajasthan High Court: GST Not Applicable on University Affiliation Fees
The Rajasthan High Court has ruled that GST is not applicable on university affiliation fees charged by universities to affiliated colleges. The court determined that affiliation services provided by universities do not constitute a taxable supply under GST law, exempting these fees from indirect tax. This ruling has significant implications for the higher education sector across India, potentially relieving affiliated colleges from GST liability on affiliation charges and clarifying the tax treatment of regulatory or statutory functions performed by universities under education legislation.
FOI release: Number of live Corporate Criminal Offences investigations
A UK Freedom of Information release reveals the number of live Corporate Criminal Offences (CCO) investigations being conducted by HMRC. The CCO, introduced under the Criminal Finances Act 2017, holds corporations criminally liable for failing to prevent the facilitation of tax evasion by associated persons. The disclosed figures provide insight into HMRC's enforcement activity and appetite for prosecuting businesses under this legislation, which is relevant for tax controversy practitioners advising corporates on compliance frameworks and the risk of criminal liability for tax evasion facilitation.
UK tax changes under Andy Burnham and John Healey: what businesses and individuals need to know
This article from Saffery examines UK tax changes introduced under Andy Burnham and John Healey, outlining implications for both businesses and individuals. It covers key policy developments affecting corporate and personal tax obligations, helping practitioners and taxpayers understand compliance requirements and planning considerations under the current UK government. The piece addresses how legislative shifts impact income, business structures, and broader financial planning, serving as a practical guide for those navigating the evolving UK tax landscape under the Labour administration's fiscal priorities.
France: Electronic invoicing implementation deadlines confirmed
France has confirmed the implementation deadlines for its mandatory electronic invoicing system. The rollout follows a phased approach targeting businesses based on size, with large enterprises required to comply first, followed by mid-sized and then small businesses. The French e-invoicing mandate requires businesses to both issue and receive structured electronic invoices through approved platforms, representing a significant compliance shift for companies operating in France. Practitioners and businesses should review their invoicing systems and ensure readiness ahead of the confirmed deadlines to avoid penalties and ensure uninterrupted trading operations.
83 Country Profiles on E-Invoicing, E-Reporting, E-Transport, SAF-T Mandates, and ViDA Initiatives
A comprehensive reference covering e-invoicing, e-reporting, e-transport, SAF-T mandates, and ViDA initiatives across 83 countries. The resource provides practitioners with jurisdiction-specific profiles on digital tax compliance requirements, offering a broad overview of where mandates stand globally. This is a valuable practitioner tool tracking the rapidly evolving landscape of real-time digital reporting obligations, continuous transaction controls, and VAT in the Digital Age reforms that are reshaping tax compliance obligations for businesses operating across multiple jurisdictions worldwide.
Fiscal Representative in France: What Non-EU Businesses Need to Know
Non-EU businesses selling goods or services in France are required to appoint a fiscal representative to handle VAT obligations, as France does not participate in the EU's simplified VAT registration schemes for non-EU entities. The fiscal representative assumes joint liability for the company's French VAT compliance, including registration, filing returns, and remitting tax. Key triggers include importing goods into France, holding stock there, or making taxable supplies. Businesses must carefully select a qualified representative, as the role carries significant legal responsibility. This requirement adds administrative burden and cost for non-EU companies operating in the French market.
Burnham Removes Tax On Electric Bills To Ease Living Costs
Andy Burnham, Mayor of Greater Manchester, has announced the removal of tax on electric bills as a measure to ease living costs for residents. The policy targets the tax component embedded in electricity pricing, aiming to reduce household energy expenses. This move represents a local-level fiscal intervention focused on consumer energy costs, with direct implications for personal finances and regional tax policy. The decision reflects growing political pressure on authorities to address energy affordability through tax relief mechanisms rather than subsidy-based approaches.
What Burnham’s new government means for accountants and clients
Andy Burnham's new government in Greater Manchester signals potential regional policy shifts with tax and fiscal implications for accountants and their clients. The article examines what the devolved administration's priorities mean for local businesses, including potential changes to business rates, regional investment incentives, and how accountants should advise clients operating in the Greater Manchester area. With increased devolution powers, the new administration may influence local tax policy decisions affecting both corporate and personal taxpayers, making it relevant for practitioners serving clients in the region.
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